2.
3.
4.
5.
6.
Intention to create legal relations
Agreement (an offer and acceptance)
Consideration (the price)
Capacity of the parties
Consent that is genuine
Legality of objects
I Always Consider C
1
QUESTION 1
Goochi Ltd manufactures a range of leather fashion accessories. The companys management
accountant is in the process of preparing a budget for one of its products, a leather mobile
phone
AYN456 Practice Quiz week 6
1.
The parties draw up a document where a sale will take place, only
when a formal contract has been signed by all parties.
a.
This indicates that the contract is complete
iCover
Leather
Selling price
$
0.25 square metres
25.00
@
$
15.00 per metre
Closing inventory for finished goods = 25% of next month's sales
Closing inventory for raw material should be kept at 10% of
Question 1
ANSWERS
First we must find the nominal rate
i (effective rate)
5.50%
m (compounding periods
365
j (nominal rate)
0.05354469
using formula
j (nominal rate)
0.05354469
using excel function
Co
Note that 2 columns can be used for subtotals
as below or 1 column only can be used.
AYN 416 Revision Questions Solutions
Fluid Ltd
Statement of Cash Flows
For the year ended 30 June 2016
Cash Flows f
Have you read the exam information in
detail and know what to focus on for
revision?
Yes, but have not had a great amount of time
yes
Yes, I read the exam information.
yes
Yes
yes
Yes
Yes, I have. Thi
Project 1
(1) The amount of the annual loan repayment and
repayment schedule
Loan =
n=
r=
Cost of capital
Repayment
$
1,500,000.00
5
7.15%
10.80%
$367,307
PV = $1,500,000 = R [1-(1.0715) -5/.071
$1,50
How competent do you feel so far about the material
from topics 1 and 2?
b) Very Good
d) Struggle in some areas
c) OK
a) Completely
b) Very Good
b) Very Good
b) Very Good
b) Very Good
c) OK
b) Very Go
Question 1
1.5 out of 1.5 points
Given the data below, calculate the net present value of an infinite chain of
replacement using the equivalent annual value method. Assume the cost of capital
is 11% p
SOME INTERESTING FORMULAS
Present Value and FV of a Growing Annuity
PV 0=
[ ( )]
CF 1
1+ g
1
(r g)
1+r
[
n
n
n
(1+r ) ( 1+ g)
FV n=CF 1
rg
]
Of course once you have the PV it is easy to find the FV an
AYN456 BUSINESS
AND CORPORATIONS
LAW
Week 9 Additional resource for lecture
supplement
Who owes the duties?
At common law, directors and managers
are in a fiduciary relationship with the
company: Timb
Question 1.
First we must solve for the annual nominal rate.
If ANR = Jm
i = effective rate
m = compounding periods
Jm = m x [(1 + i)1/m 1]
= 365 x [(1+.055)1/365 1]
= .0536
= 5.36%p.a
Monthly rate =
Project 1
Solution
(1)
Amount of Repayment and Repayment chedule
Loan Taken
No of Installments
Rate of Interest
Installment No
$
2,000,000
5.00
6.32%
Principal Amount
Interest Amount
1
2
3
4
5
$
$
$
$
Project 2
Cost
Cost of Capital after tax
life
Salvage Value end of year
three
Depreciation - Straight Line
Rate 1/life in years
Depreciation - Diminishing
value rate (SLR * 2)
Gain on Sale
Book Value
Example One
What is the present value of an annuity of five payments of $3000, with the first
payment made now and the others at yearly intervals? The discount rate is 10% pa.
This is an annuity due.
Foreign Market Analysis
To successfully increase market share,
revenue, and profits, firms must normally
follow three steps:
Assess alternative markets
Evaluate the respective costs, benefits, and
r
Capital Structure 1
BigCo, a conglomerate with beta of 0.8, and debt to equity of 0.15 is thinking of launching a risky project
in the mining sector, which is significantly more risky than BigCos curr
MBAS 821: Finance
Fundamentals
SESSION 4:
CAPITAL BUDGETING
Outline for Today
TOOLS FOR CAPITAL BUDGETING
MAPPING PROJECT CASH FLOWS
Major categories of cash flows
Depreciation tax shields
THE DISCOUN
MBAS 821: Finance
Fundamentals
SESSION 2:
PRICING SECURITIES
Outline for Today
Bond Pricing
The cash flow map
The discount rate (bond risks)
Bond Ratings
Price Volatility
Equity Pricing
Preferred and
MBAS 821: Finance
Fundamentals
SESSION 5:
SPECIAL CASES IN CAPITAL
BUDGETING
Outline for Today
SPECIAL CASES
MODELLING UNCERTAINTY
Replacement decision
Mutually exclusive projects
Limited capital budg